RENGO-Endorsed Member Leaves Angrily
SG Comments on the Pension Council's Proposal
(23 October 1998)

The Pension Council compiled a proposal on the "National Pension/Welfare Pension Insurance System Reform Amendment." The RENGO-endorsed council member maintained opposition and left his seat upon hearing that the proposal insisted on the MHW's five alternatives in which restrained benefits were a foregone conclusion. Responding to the proposal, RENGO's Secretary General issued a statement on the same day calling it "extremely unfair and entirely unacceptable."

  1. On October 9, the Pension Council compiled and presented a written proposal on the National Pension/Employees' Pension Insurance System amendment, the core of which included the reduction of the benefit levels, to Minister of Health and Welfare. The RENGO-endorsed council member strongly maintained, "the council has not deliberated enough. The proposal insisted on the MHW's 'Five Alternatives' in which restricting benefits is a given factor. I am opposed to it." Stating that he would not assume responsibility for the statement in its current form, he got up and left the meeting. RENGO cannot accept this proposal which as our endorsed council member has stated, "postpones the issue of basic pension system reform and only reduces benefit levels."

  2. The language in this "proposal" expresses the opinions of the majority as "appropriate," "necessary," and representing "a strong agreement," while those of the minority were described only as "there was an opinion," as if the council's agreement and direction were concluded on the spot without any further deliberation deemed necessary. This proposal only emphasizes increasing Welfare Pension expenses (double the current amount) and proposes inadequate system reform such as lowering benefit levels, raising the pensionable age, and suspending wage indexation. It does not accurately reflect each member's opinion and is extremely unfair.

  3. Pension matters are long term issues. However, measures such as lowering benefits, increasing insurance rates, raising the pensionable age must be avoided in consideration of the impact on those living on pensions who are oppressed by a long-term recession and low-interest policies, and the severe economic situation which might fall into a "deflation spiral."

  4. To establish a stable and reliable pension system, RENGO has resolutely pursued 1) Increasing government liability on basic pensions to one half, transferring it to future taxation. 2) Maintaining current pension levels. 3) Keeping pension indexation to disposable income. 4) Linking retirement with pension. 5) Imposing a freeze on insurance rate increases. Further, RENGO conducted its own pension estimate, showing that it is possible to maintain current benefit levels while keeping the burden of future insurance rates within an acceptable national consensus.

  5. To achieve our pension reform policy, RENGO is strengthening our group petition movements in coordination with constituent organizations, local RENGO and others. RENGO also supports activities such as holding rallies and discussions in conjunction with various retired, welfare, and women organizations in an effort to represent the wide-ranging voices of those seeking secure post-retirement lives. Further, we will organize a massive national movement to realize a "Secure and Reliable Pension System" starting from the workplaces and local areas.


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